Pakistan Perspective
Some uncertainty prevails
The recent bomb explosion at the Pakistan State Oil (PSO) parking with some of the similar incidents at many sensitive areas in Karachi shows that there are elements bent upon destroying investor confidence in the city, and as Karachi is the major industrial city, the reflection would be carried throughout Pakistan. Under the circumstances, foreign investors would shy away and local investors would adopt the attitude of wait and see.

In the past few weeks, the boom in the Karachi Stock Market has thawed and some of the war cries from the United States have made matters worse. Pakistan a Muslim state and very much in sympathy with Iraqi people, is also trying its level best to add its voice against the US led war on Iraq. The common perception among stock market brokers and agents is that investors are staying away from the market because of prevailing concerns over the prospects of war in Iraq. The wait and see scenario is very much on. Once this uncertainty is cleared up, the market is expected to start behaving normally, a 'rebound' is certain to create a healthy stock market climate.

An AFP report said that most Asian markets, including the Karachi market, showed weakening since the last one or two weeks as the prevailing war fears continued to erode investor confidence. The declines gathered momentum after Bush took a tough line against Iraq.

Bush's rhetoric seems to have gathered momentum with war drums sounding intermittently. The US Secretary of State, Colin Powell, has spoken to the UN Security Council but there is no new "evidence" to justify any harsh measures, let alone war, against Iraq.

The manner that bush has adopted calling for war seems a personal vendetta. "We will consult, but let there be no misunderstanding: If Saddam Hussein does not disarm, for the safety of our people and the peace of the world, we will lead a coalition to disarm him," Bush said in his speech to a joint sitting of the US Houses of Congress. Bush adds a new twist, "If war is forced upon us, we will fight with the full force and might of the United States military - and we will prevail".

The fact of the matter, however, is that waging war is being taken by the US as their divine right and with that - Bush adds new angles to the Iraqi affair.

In all this 'heavy handed' stuff of the US, the only other leader who has supported Bush's 'cry for war' is British Prime Minister Tony Blair. He seems to repeat if not the exact words of what Bush says; he reflects a similar mindset. The investment climate has deteriorated due to international crises looming large on the horizon also, on the internal level in Pakistan, there are enemy elements bent upon sabotaging what little confidence level is there by staging acts of violence including bomb-blast incidents.

It will take sometime before US-Iraq issue comes to conclusion. With the present uncertainty, the economic balance would weigh negative factors only.

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